Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 8 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued:

	Cash Paid	Interest Expense	Amortization	Balance
January 1, Year 1				$948
December 31, Year 1	$60	$76	$16	964
December 31, Year 2	60	77	17	981
December 31, Year 3	60	79	19	1,000

Required:

1. What was the bond's issue price?

2. Did the bond sell at a discount or a premium? How much was the premium or discount?

3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2?

4. Show how the following amounts were computed for Year 2: (a) $60, (b) $77, (c) $17, and (d) $981. (Enter percentages in decimals.)